Lot Loans

Take your dream location off the market fast with a large range Lot Loan program. Interest only payments with terms up to 5 years. Buy now and build later.

Lot Loan Programs

Terms of the loan will vary by lender but common lot loans include fixed and adjustable balloon type products which breaks the loan up over 30 years. Most lenders require anywhere from 10% to 20% down payment and at least one utility available from the street. Lot loans provide financing for the acquisition of unimproved land for a 2nd home or land that you intend to build your dream home on in the near future.

  • 20yr Term with 3yr Balloon or 20yr Term with a 3yr Balloon I/O
  • Interest Only Programs
  • FAST Closings
  • Up To 5 Acres

Construction To Perm Loans

The most common construction loans and remodel loans today are often a one-time close loan with one set of loan fees. This means your loan will be combined into one package instead of spread out over many different loans. These construction loans enable you to do a number of things such as build your dream home, remodel your current home, and acquire a piece of land for building a second home or out of state getaway.

Construction Loan Benefits

  • One-time close construction to permanent financing
  • Different property types including lots, permanent residences, and out of state getaways.
  • Owner builder loans let you be your own contractor which can provide equity immediately after construction.
  • Remodeling loans allow you to add to your current residences value.

There are a few choices when it comes to building or remodeling a house. Working with an experienced loan officer is key to everything in your project going smoothly.

  • Lower Down Payments – Appraisal only programs allow you to take advantage of equity gained through building a home and qualify based on after-completion value.
  • Lower Payments – Lock into today’s low mortgage rates for your permanent loan, before you break ground or during construction.
  • No Payments – Preserve your cash flow during construction, monthly interest only payments are made from the construction loan not your wallet.
  • Flexible Builder Approval Programs – Make your builder happy with easy builder approval.
  • Build the Home You Want – Construction materials allowed: stick built, modular home, log home, panelized, SIPS, ICFs.
  • Property Types – Primary residence, vacation homes, log homes, out of state getaways.

Access to the nation’s best construction loans begins here. Diversify your lending sources and save your valuable time and money. Now more than ever it is essential to work with lenders who have experience closing construction loans and a product selection that isn’t “one size fits all”.

Simply put, our network of lenders are experienced in tailoring construction loans to meet your needs. Real experts, with access to flexible programs, can accomplish both your project and your financial goals.

203k Loan Benefits

  • Add Value to Your Existing Home – Use the after-completion value for loan qualification purposes.
  • One-time close – Pay off your existing mortgages and combine into one loan with construction costs.
  • Low Down Payment - Depending on the equity position after improvements and length of residency.
  • Interest Only Payments During Construction

Have you made the decision to stay in your current home but need some extra room or updates? Have you found the perfect fixer upper to buy? If you have a remodel project, which significantly increases the property value of a home, then a remodel loan is what you need.

A remodel loan is essentially a construction loan, and comes with all of the same benefits. The main benefit of a remodel loan vs. a home equity line of credit is the ability to use the after value of the property for loan qualification purposes.

Remodel loans of this nature require the expertise of a qualified construction loan officer to complete an analysis of your proposed project to ensure the improvements won’t exceed the value of your renovated home.

What is a 203k loan?

203k Loan Guide

203k FAQs

Construction Loan – FAQs


Can I do a stated income construction loan?

No – Due to the current housing crisis many lenders no longer offer stated income loans. You can check with your construction loan expert as it may vary by lender.

 

What happens if a borrower goes over budget during construction?

Most construction loans come with a contingency reserve. Contingency reserves are funds set aside in case of overruns. Typically 5 to 10 percent of the construction cost is set aside, in addition to the construction budget, to help borrowers in case of overruns.

 

Does the borrower have to sell their home prior to construction?

No. There are programs available, which allow the borrower to begin construction prior to selling their primary residence. Since payments will be made using an interest reserve account designated at construction loan closing, the borrower doesn’t have to worry about making payments on two houses at once.

 

How should a borrower choose a construction loan?

While interest rates and fees will play a determining factor in a borrower’s decision for a construction loan, the borrower also should place equal emphasis on the loan features being offered. The best deal is one where the borrower can accomplish all of their objectives. When working with the right lender, a borrower has the ability to tailor a program to meet: cash flow, interest-rate, and project goals. Working with a construction loan expert will make all the difference in how smoothly the transaction is executed and will educate the borrower on the process so there are no hidden surprises after closing.

 

When should a borrower begin looking into construction financing?

Financing should be your first step in the construction process. A borrower must understand how much home they can afford before they can begin looking at plans, land, and construction costs. Through a quick consultation with construction loan specialist, a borrower will know exactly how much they can spend on their project.

Can expenses incurred prior to closing be used in lieu of cash to close?

Yes. The borrower must provide receipts and canceled checks to show what funds were used for the project. These monies can be used towards cash to close. Permits, plans, and material deposits/purchases prior to close all fall into this category.

 

Can land equity be used in lieu of cash to close?

Yes. Existing land equity can be used. Determining equity is done in two ways. Depending on how long the borrower has owned the property, either the purchase price or market value will be used to determine equity. If the borrower bought a piece of land for $40,000 one year ago and today it is appraised at $20,000, the equity is $20,000. This holds true even if the market value of the property is $60,000 today, because of seasoning. Market values can be used to calculate equity if the borrower has owned the property for or more than two years. Land comps will be needed to justify both market value and purchase price.

 

How much money does a borrower have to bring in order to close a construction loan?

There is no uniform answer to this question since cash to close is determined by many factors. Loan size, existing equity, loan to value, and builder type all determine cash to close. A construction loan expert can tell you exactly how much you’ll need to bring to close very quickly.

 

Are there construction programs available for leasehold properties?

Programs are available for leasehold properties with lease terms that exceed 30 years.

 

How long will it take to close my construction loan?

The answer to this question depends on what stage the customer is in during the construction process. If a customer has their plans finalized, cost breakdown completed, and general contractor selected, closing should take a few weeks.

 

Are there programs available for borrowers with credit scores under 680?

While programs are available, typically customers with credit scores under 680 will have to bring cash to close or have substantial equity in the property.

 

Is it possible to pay down the principal balance, prior to converting to the permanent loan?

Yes. The borrower is free to pay down the construction loan to reduce the principal balance and payments. In many cases, borrowers choose to apply sale proceeds of primary residences prior to converting to permanent.

 

What fees are associated with the permanent loan?

If you have a one time close loan then there are no additional fees. The only process is modifying to a permanent loan however some lenders today have a two-time close which means you must qualify for the permanent loan and you are subject to a second closing and applicable fees. The fees will vary, so it is best speak with your construction expert and let them assist you.

 

How are construction funds disbursed?

Funds are disbursed through draw requests. Prior to closing borrowers will submit a cost breakdown, which details the itemized costs to complete their home. Depending on the loan draw schedule, borrowers may have five or an unlimited number of draws for their project. In a typical scenario, the borrower or builder will request a draw after work has been completed on the project. The lender will then schedule and inspection by a third party to verify work has been completed. Once work has been verified the lender will then wire money to either the borrower or builder depending on how the borrower would like to handle funds. This process usually takes three days to complete.

How is interest calculated and how are mortgage payments made during construction?

Interest is calculated based on the outstanding principal balance during construction. Interest accrued each month is billed to the borrower. For customers to utilize interest reserve accounts the payments are made automatically by the loan from this account.

Green Remodeling Tips Around The Home

Being energy efficient no longer has to be expensive. With each passing week there are new innovations to help you start saving money as well as the environment as fast as possible. Here are some quick tips you could do today to help the environment and be a little more “green”.

  1. Upgrade your light bulbs

CFLs (Compact Fluorescent Light Bulbs) are one of the quickest and easiest ways you can be energy efficient today. The next time your bulbs go out, or if you feel like just investing in better bulbs, head to your local home improvement store and pick up some CFLs. These light bulbs can save over 40 dollars in electricity over their individual lifetime. They also are built to be more efficient and produce 75% less heat and energy while still lasting longer then a normal bulb. Save the environment and your money by investing in CFL’s.

  1. Use Your Garbage Disposal.

To many people, the garbage disposal is simply that thing that makes noise under your sink. Most people do not understand that if they dump food waste down the disposal instead of the sink, they can more efficiently help the environment. Naturally disposing of waste like this also create less trash, therefore less to throw away in the local landfill. So next time you have a full plate, put it in the garbage disposal instead of the waste bin.

  1. Install water efficient fixtures.

Whether it is the showerhead or the faucet, there is easy ways to save water today. Installing new fixtures with low flow options can greatly cut back on the amount of water that is wasted on daily basis. These products are designed to optimize the lower water flow, and most people cannot even tell the difference from the less water. This is especially important if you have a faucet with a slow leak. Slow leaks can waste gallons of water per day and thousands of water per year.

These are only a few simple ways you can save energy, water and waste, but hopefully you have seen that this is a simple process and the time impact you put into them will greatly affect the environment for the future.

Author Bio

Josh McNair is an avid believe in living a green lifestyle. He works for PlumberSurplus.com which sells everything from Bathtubs to Shower Doors.

Real Estate Franchise Businesses

As the real estate markets begin to heal franchise businesses are becoming more attractive.

FranFinders an Atlanta franchise consulting company has seen an increase in interest for real estate related franchises.

“From home staging franchises to home inspection franchises we are seeing a considerable amount of activity from interested franchisees” said Rob Bennett of FranFinders.com.  “We won’t go as far as saying we’re at a bottom real estate but it is surely a sign that things are improving for the category”.

There are plenty of real estate franchises to choose from for would be business owners.  Go take a look at FranFinders real estate franchise section.

5 Tips When Buying A Front Door

Choosing a front door to some couldn’t be easier, have a quick search online or trundle down to the local home improvement shop and make a decision. Some people however not only find making home improvement decisions difficult but they also get zero enjoyment out of the activity.

It is common knowledge that a door says a lot about your property and that in some cases it can mean the difference between selling a house and it remaining on the market. Virtually every house needs a front or back door, but the requirements of that door frequently shift.

Below we have tried to outline what we consider to be the top 5 tips when trying to purchase a new door.

1. Pick a color, any color

Choosing a color is normally the first hurdle you are faced with when buying a door. It really is a matter of preference, and for this reason everyone seems to have an opinion as to what it should be. Colors are supposed to have characteristics unto themselves, yellow for instance is associated with joy. With all these choices the person you need to consider is yourself, will you enjoy approaching the door on a daily basis? If the answer is yes, your decision is made.

2. Maintenance

Choosing the wrong material for your door could set you back a lot of money in maintenance and repairs. Modern composite GRP coated doors may require just the occasional wipe down whilst wooden doors require regular treating and sanding. Depending on the climate of where you live may determine what material you choose, wooden doors in wet and humid conditions tend to warp if not looked after properly.

3. Think about security

Doors were invented for the sole purpose of preventing unwanted visitors, so the earliest records of doors (scenes painted on Egyptian tombs) suggest. The issue of security it seems is as important today as it was back then, perhaps even more so nowadays. Door manufacturers and the government realise this and have subsequently created a number of standards for which all new doors must try to comply with. There is a hierarchy of standards to comply with so look into which suits your needs, whichever you pick may also affect your home insurance (something to consider).

4. Think green

There has never been a time in our history when the idea of reducing carbon emissions and recycling has been so high on the public’s agenda. In the UK strict new legislations have been put on the amount of heat allowed to be lost through all new doors; the overall goal being to reduce the nations CO2 emissions. From a consumer point of view buying a well insulated door will save you money in the long run, through reduced heating/cooling costs. You will also have reduced your carbon footprint and no doubt feel good about yourself.

5. Choose the right hardware

Door hardware relates to knockers, handles, and lock types; basically anything which is added to the door at the point of manufacture or post purchase. Most people assume that hardware is purely an aesthetic choice, making your door look the way you want it. You are partly correct, but choosing the right locks and security additions could prove very useful too. Make sure you look at your hardware choices from a couple of different perspectives.

These ideas are brought to you in association with composite door manufacturers Door-Stop. Door-Stop are the first composite door manufacturer in the UK to offer double sided color matching. Meaning your new door will be the same color inside and out (most other manufacturer’s only offer a white internal finish).

Boiler Rooms the New Status Symbol

High-fashion boiler rooms.

Are you a boiler room geek VIDEO?

Net-zero Energy Homes

Net-zero energy homes are gaining in popularity, but before buying a green home or an add-on product designed to generate energy, make sure you do your homework.

Home Builders Brace For A Tough 2010

International  Builder Show

The 2010 International Builders' Show (R) | January 19-22, 2010 in Las Vegas, NV

The weak credit availablity and low demand will make 2010 another rocky road for many home builders.  This article details the issues centering on the Home Builder Expo in Las Vegas this month: Home Builders 2010.